After all of the excitement about AMZN, MSFT and INTC leading to a huge jump in the NASDAQ at the opening today, the markets cooled down and finished flat. The DOW lost 11 points, the S&P gained 2 and the NASDAQ added just a single point.
The DOW was mainly lower and hindered all day by another decline in AAPL ahead of its report on Tuesday. There was also a downside reversal in INTC, and the DOW was hurt by the lack of follow-through in BA. Another decline in 3M didn’t help, as this company has gone down every day this week after its earnings. XOM had a weak report while on the other hand, CVX, did well on its report. NKE and UNH went up along with VZ which continues to gain after its good earnings earlier in the week.
The NASDAQ was hampered by the lack of follow-through in FB and AAPL. GOOG did poorly but in addition to AMZN, there were gains in TSLA and in BKNG on the back of a good report from EXPE.
AMZN cooled off after trading as high as 1665 in the pre-market as overnight became hyper excited as did buyers in the regular session, The stock to 1638 and closed at 1,572.
Breadth numbers were slightly positive and the VIX was lower again to end at 15.41 for a decline of .83…once again approaching its near-term support level.
Bond yields were lower for the second day with the 10-year Treasury Note at 2.96% and the 2-year at 2.48%. The Euro and the Japanese yen were doing very little and gold was higher at $1,324. Crude oil was once again at $68 a barrel.
The overall bull market is now in its 108th straight month. This compares to the average length of 59 months for the 11 bull markets since 1949 and it is now the second longest bull market in history.
Donald M. Selkin
These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.